Mini Diamonds is the kind of company that makes you wonder: is this a gem or just glass with good lighting? Incorporated in 1987, it cuts, polishes, and trades diamonds—and also sells some gold jewellery for extra glitter. Market cap is ~₹389 Cr, stock trades at ₹165, and the P/E is a blinding 114. That’s not a valuation, that’s daylight robbery with a sparkle.
2. Introduction
India is the world’s polishing factory for diamonds, with Surat alone accounting for 90%+ of global cutting. Into this glitter pit walks Mini Diamonds (India) Ltd, operating out of Mumbai with its Sarin machines and polishing wheels.
The company is smallcap to the bone—revenue ₹417 Cr, PAT just ₹3.4 Cr, margins thinner than a diamond wafer. Export markets include USA, Belgium, Hong Kong, Dubai, and Israel—basically every place where rich people like their bling.
But the mystery: with such global reach, why are promoter holdings down to just 4.95%? When promoters themselves treat the company like a piece of costume jewellery, should outsiders expect Tiffany-level confidence?
3. Business Model – WTF Do They Even Do?
Let’s decode:
Cut & Polished Diamonds: Main business, accounting for ~95% of revenue. They buy rough stones, cut, polish, and sell them internationally. Think of them as a barber for rocks.
Gold Jewellery: Small but growing line, added via Namra Jewels portfolio (3,750 new designs launched in Aug 2025). Because when margins are microscopic, why not throw in bangles?
Labor Charges (~5%): Basically subcontracting—Mini Diamonds lets its factory earn pocket money by polishing others’ stones.
Manufacturing unit in Mumbai is equipped with Sarin tech, auto bruiting machines, and polishing mills. Exports contribute ~95% of revenue, which means they are entirely at the mercy of FX rates and US jewellers’ moods.
4. Financials Overview
Metric
Latest Qtr (Jun 25)
YoY Qtr (Jun 24)
Prev Qtr (Mar 25)
YoY %
QoQ %
Revenue
₹100.5 Cr
₹89.1 Cr
₹96.8 Cr
12.7%
3.8%
EBITDA
₹2.55 Cr
₹1.97 Cr
–₹0.85 Cr
29.4%
N/A
PAT
₹1.82 Cr
₹1.84 Cr
–₹2.7 Cr
–1.1%
N/A
EPS (₹)
0.77
0.70
–1.15
10%
N/A
Commentary: Revenues grew, profits flatlined, margins still lower than roadside tea-sellers. EPS fluctuates like bitcoin in 2017.
5. Valuation – Fair Value Range Only
Method 1: P/E Multiple
Industry PE ~29.
EPS TTM ~₹1.45.
Fair Value = 1.45 × (15–25) = ₹22 – ₹36.
Method 2: EV/EBITDA
EV = ₹389 Cr.
EBITDA ~₹6 Cr (FY25).
EV/EBITDA ~65.
Sector reasonable = 10–15.
Fair EV = 60–90 Cr → Fair Price per share = ₹25 – ₹40.
Method 3: DCF (optimistic)
Assume normalized FCF = ₹5 Cr with 12% growth.
WACC = 11%, terminal growth = 3%.
DCF Value = ₹120–₹150 Cr = ₹50 – ₹65 per share.
👉 Fair Value Range: ₹22 – ₹65. (Current price ₹165 = champagne pricing for soda-level returns.) Educational purpose only. Not investment advice.
6. What’s Cooking – News, Triggers, Drama
Aug 2025: Launched 3,750 new jewellery designs. Good news for festive season, bad news for designers’
